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59. A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used. Backorders are allowed, and they are charged at the rate of \$8 per unit per month. Inventory holding costs are \$1 per unit per month in ending inventory. Determine the cost of this plan if regular time cost is \$20 per unit and beginning inventory is zero. 60. Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is \$30 per unit, backorder cost is \$20 per unit, inventory holding cost is \$5 per unit, regular time cost of \$20 per unit, and beginning inventory is zero. 61. Use either the transportation method or linear programming to develop an optimum aggregate plan, given the following data: 62. Prepare a master schedule based on the following information: Currently there are 145 units in inventory. Policy calls for a fixed order quantity of 250 units. 63. What is total forecasted demand? 64. What is total regular time capacity? 65. How should overtime capacity be utilized? 66. What are total regular time costs? 67. What are total overtime costs? 68. What are total carrying costs? 69. What are total backorder costs? 70. What are total costs for each period? 71. What are total costs for the six periods? A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. 72. What is the projected on-hand inventory at the end of period 2? A. 21 B. 1 C. 12 D. 20 E. impossible to say without more information 73. What quantity is available for commitment to new customers in either of the first two periods? A. 21 B. 1 C. 20 D. 4 E. impossible to say without more information A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3. 74. What is the projected on hand inventory at the end of period 2? A. 14 B. 32 C. 12 D. 20 E. impossible to say without additional information 75. What quantity is available for commitment to new customers prior to the receipt of the MPS quantity in week 3? A. 14 B. 32 C. 12 D. 20 E. impossible to say without additional information. 76. When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive. A. Layoffs B. Backorders C. Excess capacity D. Disaggregation E. Both B and C 77. The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy. A. Stable; Level B. Aggregated; Outsourcing C. Variable; Chase D. Complex; Uncommitted E. Both A and C 78. In a service setting, the aggregate plan results in a time-phased projection of __________ requirements. A. customer B. staff C. inventory D. subcontracting E. outsourcing 79. Which of the following differs between aggregate planning in services and aggregate planning in manufacturing? A. uncertainty in demand B. costs of storing inventory C. the perishability of capacity D. cost of overtime E. cost of hiring 80. At XYZ Corp., the aggregate planning unit reflects the fact that 50% of its output is product version A, 30% is version B, and 20% is version C. Suppose that over the coming year forecasted total demand (in planning units) is for 10,400 units. Once the production plan is disaggregated, what will the weekly forecast for version A be (assume 52 weeks per year)? A. 1000 B. 200 C. 400 D. 100 E. 50 81. A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3 and 4. What is the available to promise for week 6? A. 50 B. 6 C. 300 D. 100 E. Cannot be determined without projected on-hand information 82. Which of the following steps is necessary to ensure that a master schedule is valid? A. worker scheduling B. order promising C. inventory counting D. order booking E. rough-cut capacity planning

59. A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used. Backorders are allowed, and they are charged at the rate of \$8 per unit per month. Inventory holding costs are \$1 per unit per month in ending inventory. Determine the cost of this plan if regular time cost is \$20 per unit and beginning inventory is zero. 60. Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is \$30 per unit, backorder cost is \$20 per unit, inventory holding cost is \$5 per unit, regular time cost of \$20 per unit, and beginning inventory is zero. 61. Use either the transportation method or linear programming to develop an optimum aggregate plan, given the following data:  62. Prepare a master schedule based on the following information: Currently there are 145 units in inventory. Policy calls for a fixed order quantity of 250 units.  63. What is total forecasted demand?

64. What is total regular time capacity?  65. How should overtime capacity be utilized?

66. What are total regular time costs?

67. What are total overtime costs?

68. What are total carrying costs?

69. What are total backorder costs?

70. What are total costs for each period?

71. What are total costs for the six periods?

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2.

72. What is the projected on-hand inventory at the end of period 2?
A. 21
B. 1
C. 12
D. 20
E. impossible to say without more information

73. What quantity is available for commitment to new customers in either of the first two periods?
A. 21
B. 1
C. 20
D. 4
E. impossible to say without more information

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.

74. What is the projected on hand inventory at the end of period 2?
A. 14
B. 32
C. 12
D. 20
E. impossible to say without additional information

75. What quantity is available for commitment to new customers prior to the receipt of the MPS quantity in week 3?
A. 14
B. 32
C. 12
D. 20
E. impossible to say without additional information.

76. When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.
A. Layoffs
B. Backorders
C. Excess capacity
D. Disaggregation
E. Both B and C

77. The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy.
A. Stable; Level
B. Aggregated; Outsourcing
C. Variable; Chase
D. Complex; Uncommitted
E. Both A and C

78. In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.
A. customer
B. staff
C. inventory
D. subcontracting
E. outsourcing

79. Which of the following differs between aggregate planning in services and aggregate planning in manufacturing?
A. uncertainty in demand
B. costs of storing inventory
C. the perishability of capacity
D. cost of overtime
E. cost of hiring

80. At XYZ Corp., the aggregate planning unit reflects the fact that 50% of its output is product version A, 30% is version B, and 20% is version C. Suppose that over the coming year forecasted total demand (in planning units) is for 10,400 units. Once the production plan is disaggregated, what will the weekly forecast for version A be (assume 52 weeks per year)?
A. 1000
B. 200
C. 400
D. 100
E. 50

81. A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3 and 4. What is the available to promise for week 6?
A. 50
B. 6
C. 300
D. 100
E. Cannot be determined without projected on-hand information

82. Which of the following steps is necessary to ensure that a master schedule is valid?
A. worker scheduling
B. order promising
C. inventory counting
D. order booking
E. rough-cut capacity planning

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